Our Carbon Reduction Path

Scope 1 (Direct) Emissions

Metric Ton CO2e

Scope 2 (Indirect) Emissions

Metric Ton CO2e

Combined Scope 1 and 2 emissions reduced by 34% since 2012

Focusing on Climate and Energy

Our commitment to protect the environment has never been more important. Scientists are in broad consensus on the increasing risks from climate change and its potentially catastrophic consequences for the earth’s ecosystems and species if left unchecked. As a company, we pledge to be part of the solution, as demonstrated by our commitment to achieve a 50% reduction in CO2 equivalent emissions by 2030 and net zero CO2 equivalent emissions by 2050. This commitment aligns us with the Paris Climate Accord and demonstrates we will do our part to limit global warming to 1.5 degrees Celsius.

We have been focused on energy efficiency and reducing the carbon footprint of our BHGE’s operations for more than 10 years. This includes direct emissions from the use of natural gas and company vehicles, and indirect emissions from purchased electricity. We have completed more than 250 energy efficiency projects across the globe since we began tracking. We’ve completed more than 100 LED lighting installations, 120 building automation systems, heating and air conditioning system upgrades and other operational efficiencies. These combined projects remain integral to our overall plan, enabling us to reduce further our energy use, greenhouse gas emissions and operating costs.

Building construction, renovation and retrofits – using sustainable building standards, facility consolidations and retrofits with energy efficient equipment, including LED lighting, building automation systems, heating/cooling equipment and building envelope.

Transportation in company vehicles – implementing a vehicle idling policy, optimizing scheduling and logistics, and enabling use of electric vehicles, including evaluating the potential for converting our existing fleet to lower emissions models.

Renewable energy sourcing – incorporating an increased percentage of renewables in utility contracts and the increased use of onsite power generation through rooftop solar and other opportunities.

Tool and equipment redesign – reducing energy consumption through use of less emissive materials, more recycled materials, lower quantities of materials, and streamlined manufacturing processes, as identified by the systematic use of lifecycle assessment to quantify emissions of our products and services.

Ensuring Transparent Carbon Reporting

In 2018, BHGE was recognized for 10 years of reporting to the Carbon Disclosure Project, continuing a legacy of transparency in the climate change arena. Each year, we strive to improve our carbon emissions tracking and reporting, and ensure accuracy using third-party verification. Going forward, a new carbon emissions dashboard will provide more detailed progress to internal and external stakeholders. The dashboard will include emissions for our direct operations, as well as track work that has been completed or is underway for our various carbon reduction pathways.

In addition, we are embarking on emissions lifecycle assessments of key parts of our portfolio. Through such assessments, we will establish baseline emission levels for our products and services, allowing us to identify ways to reduce their footprints on an ongoing basis. In addition, we plan to obtain third-party certification that our lifecycle assessments conform to the relevant ISO standards. This will allow our customers to document reductions in their carbon footprints arising from the use of our products and services, helping them attest to the achievement of their own carbon reduction targets.

As global leaders in our industry, we collaborate on efforts to improve energy efficiency and reduce greenhouse gas emissions through the International Oil & Gas Producers Association (IOGP) Environment Committee as well as the IPIECA Climate Change Working group and forums such as Society of Petroleum Engineers (SPE), American Petroleum Institute (API) and other national and local industry associations. In addition, in early 2019, BHGE became a signatory of the Methane Guiding Principles, joining other leading companies to enhance transparency, reduce methane emissions and advocate for effective and appropriate regulatory frameworks.

Setting Goals and Measuring Progress

To demonstrate ongoing progress and commitment to meeting our long-range targets, we will establish much shorter-term, interim milestones to ensure we are on track. We set goals as ambitious as 10% emissions reduction each year. For 2018, we achieved an 11% reduction in emissions associated with our BHGE direct carbon footprint. This was achieved through a combination of strategies, including 33 LED lighting building retrofits, the installation of solar panels on rooftops in Vibo, Italy, and on covered parking in Billerica, MA, as well as numerous other facility-specific energy efficiency projects worldwide.

We also constructed or expanded six facilities that incorporated our sustainable building standards and completed 73 facility consolidation projects. These consolidations have improved the overall energy efficiency across our real estate portfolio by decreasing the energy intensity of the activities at our company locations and have improved the efficiency of our logistics network. With our progress to date, we are on track to achieve our 2030 carbon emissions target as compared to our 2012 baseline.

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Energy Innovation Center

Our Energy Innovation Center (EIC) campus in North America is our latest success in applying sustainable building standards and design components, including natural lighting; energy efficient hardware, particularly for heating and air conditioning; and building automation systems. The EIC’s design also features energy efficient windows and motorized shades to reduce solar heat gain and minimize glare. We have installed 10 electric vehicle-charging stations in the parking garage. The building was designed to meet the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) Gold standards. The wide variety of energy savings strategies used throughout the facility reduces energy use by 25.4% over traditional building standards, eliminating 985 metric tons of CO2 per year.